USD Flows: Better inflation/sentiment mix, but relief or respite
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US data fits with inflation respite and sentiment lift
Question again is how durable given recent Iran impasse
Latest US data fits with the very recent pattern for some sentiment upside / inflation downside as PPI numbers come in on the low side of consensus (0.5 to 0.7pp below mkt on the headline and core yr/yr rates) following CPI yesterday, while the Empire survey shows stronger activity figures across the board (new orders 22.2 from 3.5). The big question to all of this current data flow of course is how resilient it all proves to be to the current again-uncertain impasse in Iran. FX currently a bit sidelined today.